New student loan rates set; student loan consolidation more expensive after July 1

June 03, 2005 (PRLEAP.COM) Education News
(For Immediate Release)

New student loan rates set; student loan consolidation more expensive after July 1

Quincy, MA—

With the final auction of the 91-day Treasury Bill on May 31, 2005, federal student loan rates have been set for the new academic year beginning July 1, 2005. The new rates for student loan are:

Stafford Loans for students in school: 4.70%
Stafford Loans for graduates in repayment: 5.30%
Parent Loans for Undergraduate Students (PLUS): 6.10%
Perkins Loans: 5.0%

These new loan rates take effect as of July 1, 2005. Students who want to lock in today's rates, which are much lower than the new rates, can consolidate their student loans until July 1 and lock in current, low rates.

The savings are not insignificant, either. On a balance of $30,000 in student loans, a student that consolidates today would have an estimated monthly payment of $212 per month. That same loan payment after July 1 would be approximately $320 per month, a $108 difference each month.

Should students, regardless of enrollment, consolidate their student loans? "Yes, absolutely," states Katie Dexter, Director of Operations at the popular web site. "With no fees, no credit checks, and low rates, there's no reason not to consolidate, especially since the new rates are considerably higher than today's rates," said Dexter.

"However, graduates need to act today," urges Ms. Dexter. "Very often, graduates wait until the last minute to file their paperwork and by then, they may not be able to insulate themselves from the 1.93% rate change. The earlier you apply, the better off you will be."

Students wishing to file a consolidation application should do so at immediately or call (877) 328-1565.


Contact Katie Dexter at by email at for more information; to apply for a student loan consolidation, graduates should visit as soon as possible. is a service of the Edvisors Network, a multi-national education services company offering students options for managing the entire education life cycle, from getting into their college of choice to financing their education and beyond. The Edvisors Network is based in Quincy, Massachusetts, with offices in Quincy and London, England. Visit them on the web at for more information.